LIQUOR - The Source Of Revenue

LIQUOR - The Source Of Revenue

On May 4, 2020, the third phase of lockdown began in India. Under the third phase, the liquor shops are opened in selected regions with certain restrictions. The liquor shops are opening after a long gap, so there are long queues at stores all over the country. The Delhi Government acted quickly on the same day evening and imposed 70% increase in liquor prices. The State Governments have taken the step in spite of the fact that liquor revenue is one of the major sources of revenue of State Govt. except for the states of Gujarat and Bihar where the sale of liquor has been banned. It is one of the largest contributors. This was the main reason the State governments wanted liquor to be kept out of GST. The RBI report says that in 2019-20 all the states had earned Rs. 1,75,501 crores. This was 16% higher than that of 2018-19.